Correlation Between Citi Trends and Tigo Energy
Can any of the company-specific risk be diversified away by investing in both Citi Trends and Tigo Energy at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Citi Trends and Tigo Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citi Trends and Tigo Energy, you can compare the effects of market volatilities on Citi Trends and Tigo Energy and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Citi Trends with a short position of Tigo Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citi Trends and Tigo Energy.
Diversification Opportunities for Citi Trends and Tigo Energy
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Citi and Tigo is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Citi Trends and Tigo Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tigo Energy and Citi Trends is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Citi Trends are associated (or correlated) with Tigo Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tigo Energy has no effect on the direction of Citi Trends i.e., Citi Trends and Tigo Energy go up and down completely randomly.
Pair Corralation between Citi Trends and Tigo Energy
Given the investment horizon of 90 days Citi Trends is expected to generate 0.66 times more return on investment than Tigo Energy. However, Citi Trends is 1.51 times less risky than Tigo Energy. It trades about 0.09 of its potential returns per unit of risk. Tigo Energy is currently generating about -0.18 per unit of risk. If you would invest 1,885 in Citi Trends on September 2, 2024 and sell it today you would earn a total of 110.00 from holding Citi Trends or generate 5.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citi Trends vs. Tigo Energy
Performance |
| Timeline |
| Citi Trends |
| Tigo Energy |
Citi Trends and Tigo Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citi Trends and Tigo Energy
The main advantage of trading using opposite Citi Trends and Tigo Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citi Trends position performs unexpectedly, Tigo Energy can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Tigo Energy will offset losses from the drop in Tigo Energy's long position.| Citi Trends vs. JJill Inc | Citi Trends vs. Zumiez Inc | Citi Trends vs. Tillys Inc | Citi Trends vs. Duluth Holdings |
| Tigo Energy vs. Tower Semiconductor | Tigo Energy vs. Jutal Offshore Oil | Tigo Energy vs. Vishay Intertechnology | Tigo Energy vs. Valens |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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